Dow Jones Indexes Launches Asia Pacific Extra Liquid Series

Dow Jones Indexes today announced that indices based on Australia, Hong Kong and Japan will be the initial offerings of the Dow Jones Asia Pacific Extra Liquid Series (AP/ELS). Dow Jones AP/ELS is a set of equity indices designed for retail and institutional investors seeking index-linked investments in the Asia Pacific region. The indices are constructed using the largest, most liquid stocks in each country's market and were designed with the assistance of the Sydney Futures Exchange (SFE). The first investment products based on the 35-stock Australia, 30-stock Hong Kong and 100-stock Japan Dow Jones AP/ELS indices will include futures and options, warrants, equity-linked notes and mutual funds. Futures and options trading on the AP/ELS Australia index is scheduled to begin in the third quarter of 1999. Trading on Hong Kong, Japan and potentially a regional Asian index will follow in early 2000. The trading of Dow Jones AP/ELS futures and options will take place at SFE using its advanced, around the clock electronic trading system, SYCOM® IV. Mr Michael Petronella, Managing Director of Dow Jones Indexes, said: "Dow Jones Indexes is committed to providing investors worldwide with an efficient means of participating in the Asia Pacific equity markets, and has constructed AP/ELS to help reach that investment objective. We plan to increase the number of AP/ELS country and regional indices over the next year." Mr Leslie Hosking, Chief Executive and Director of SFE, said: "The introduction of futures and options contracts on AP/ELS indices later this year strengthens SFE's position as the gateway for price risk management in the Asia Pacific region. SFE offers global alliances, an around the clock electronic trading platform and, complemented by the AP/ELS contracts, the region's most innovative and comprehensive range of derivatives products." Dow Jones AP/ELS indices are constructed with special consideration to liquidity, turnover, tracking error and transaction costs. They are designed to underlie investable products rather than to serve as index benchmarks, and consequently are expected to deliver competitive performance. Dow Jones Indexes has also created a broader 150-component index for Australia, the Dow Jones Global Indexes-Australia. This index is intended for use by fund managers and will have a high correlation with the 35-stock Australia AP/ELS index. To support its commitment to AP/ELS and the Asia Pacific region, Dow Jones Indexes has appointed Mr Andrew Sinclair as Director-Asia Pacific to head its regional operations and marketing activities. Based in Sydney, he will be responsible for creating product awareness and selling licence agreements to financial institutions. Mr Sinclair has more than 12 years experience in the Australian investment industry, most recently as Head of Benchmark Securities Management Limited at Deutsche Bank, and positions with Mercury Asset Management and Mitsubishi Trust Australia Limited. Dow Jones Indexes is a premier global provider of investable indices, including the Dow Jones Averages, the Dow Jones Global Indexes, the Dow Jones STOXX family of indices, the Dow Jones-AIG Commodity Index, the Dow Jones Internet Indexes, the Dow Jones Islamic Market Indexes, and the Dow Jones Global Titans Index. Dow Jones Indexes is part of Dow Jones & Company, which publishes the world's most vital business and financial news and information. In addition to Dow Jones Indexes, Dow Jones & Company (NYSE: DJ) publishes The Wall Street Journal and its international and interactive editions, Barron's and SmartMoney magazines and other periodicals, the Dow Jones Newswires, dowjones.com, and the Ottaway group of community newspapers. Dow Jones is co-owner of Dow Jones Reuters Business Interactive LLC and of the CNBC television operations in Asia and Europe. Dow Jones also provides news content to CNBC in the USA. SFE is the largest financial futures and options exchange in the Asia Pacific region, offering around the clock trading access to over 70 derivatives products across the equity, interest rate and commodity spectrums.